Question

How to calculate fiscal deficit, revenue deficit and primary deficit

Answer 1

Answer:

Fiscal deficit

Fiscal deficit is the difference between the total expenditure and total revenue plus the market borrowings.

Fiscal deficit=(Total revenue - Total expenditure) + Market borrowings and other liabilities

Revenue deficit

Revenue deficit arises when revenue expenditure exceeds revenue receipts.

Revenue Deficit = Revenue receipts - Revenue expenditure

Primary Deficit

Primary Deficit is the fiscal deficit minus interest payments

Primary Deficit=Fiscal deficit-Interest payments